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Rich People That Want to Give Away Money

At times you might find it very difficult to understand why rich people might want to give away money. It is often believed that a lot of people who are millionaires or even billionaires give away money because of tax reasons. No matter what the reasons behind their motives might be, they're still doing something positive. It is also to be noted that those who are wealthy don't actually think of money the way ordinary citizens think about their paycheck. When you have millions, it is easier to make more money.

Number Crunching Wealth

Rich people who want to give away money are not doing it because they are more generous than the average. There are times they give because it makes them feel important to support a worthy cause. If you think about someone who has $1 billion in his bank account, what does that really mean? The average family would probably get through the year on just $50,000. How many years will it take spend $1 billion at a rate of $50,000 per year? It will literally take hundreds of years to spend everything. That is also the issue rich people have to face. Of course someone who has $1 billion in his bank account will not limit his spending to just $50,000 a year.

Philanthropists Bill Gates and Warren Buffet

The Bill Gates foundation is an example of a wealthy family given away money to poor people. You might not agree with the way they distribute their wealth and try to influence the way some charities function, nevertheless, they are a very good example of people giving to help others. Another rich person that is giving money away is Warren Buffett.

How Rich is a Billionaire?

Most people cannot even imagine how rich Warren Buffett is. He gave a staggering amount of money to the Bill Gates foundation and he still has a lot more. At times, it might be difficult to understand why a rich person will give is money directly to other people who already have a lot. The problem with managing wealth is that it does take time and financial know-how. It is not like when you give a coin to a homeless person. In the case that the homeless person decides to use the money to buy drugs or alcohol, it really wouldn't bother you that much. If you are to compare giving away $1 million to someone who decides to squander everything, that can be a waste of valuable resources. That is why rich people don't often give directly to those in need but to go through established foundations or charities.